Issues in Erp Implementation

1837 Words May 13th, 2013 8 Pages
Issues posed to ERP Implementation Projects in Manufacturing or Public Sector Organisations

Vinoraj Selvaraj

School of Computer and Information Science
University of South Australia
Mawson Lakes, Australia
Email: selvy003@mymail.unisa.edu.au

Abstract
ERP (Enterprise Resource Planning) implementation is regarded as complex, cumbersome and costly, and, very often, it exceeds the initial estimated resources. The process involves a thorough examination of the business processes in the organisation; selection of the best available software solution that matches the requirements of the enterprise; configuration of the selected systems;, training of staff; and customisation of the selected software solutions including
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This is not possible with an ERP system due to the fact that it is tightly integrated. The effect of mistakes that are made in one department passes onto other departments too fast for it to be corrected and thus the original mistakes will also get magnified as they flow through the company causing a ripple effect (Hongjiang, Rondeau & Mahenthiran 2011) . The impact of errors that are made could be detrimental to a company.
The management who approve the ERP implementation must be aware of the potential risk of error and take proper steps, such as monitoring each department and taking immediate steps to rectify the problems should they occur. This can be done by having a response team whose only task is to monitor and look out for mistakes within each department (Hoch, Dulebohn 2013). A formal plan of action which provides detailed steps explaining what should be done if there is an error has to be created. A proper means to communicate to all the parties who are victims of the errors as soon as the errors are detected is also extremely important. The management has to be aware of the changes they have to make after implementing an ERP system. This is crucial due to the fact that without the management’s guidance, the employees would not know what to do and the system will fail.
Implementing an ERP system is not a matter of changing software systems, rather it
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